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UK-based recruitment and consulting company Rethink Group (AIM: RTG) announced today that the Group traded in line with management expectations and continued its profitable growth, as reported at the half year.
The improvement in trading in the first half of the year continued into the second half, with net fee income from continuing operations up +11% compared with the second half of 2012. Net fee income from continuing operations for the full year is expected to be £19.4 million, a year-on-year increase of +7%.
The improving performance is attributed by the company, in part, to a significant new client win by the Talent Management division, combined with continued progress in the Open Market division.
In November 2013, the company announced that it was selling its entire issued share capital of subsidiary Aiimi Limited, its technology services division. Rethink announced at the time that the disposal of the non-core subsidiary would enable the Group to focus on enhancing the value of its core division, which comprised 96% of the company’s total revenue for the six months ending 30 June 2013.
Steve Wright, CEO of Rethink, commented: “We have made good progress in 2013, in what was both a turnaround year as well as the first year of our refined strategy focusing on our strength in Talent Management underpinned by the Recruitment division. The Group’s sustained increased in net fee income reflects a strong performance in our Contract Service activities, and an encouraging uplift in permanent recruitment activity.”
“We believe that the right foundations are now in place for the Group to pursue its strategy. And the Board looks forward to the future with confidence. Rethink will continue with careful investment to support the strategy as we continue to grow and build on the positive results of 2013, and develop the opportunities that we believe a stronger economy will underpin,” he concluded.
Despite the company’s positive trading statement, the company’s share price fell by -4.8% to £0.07, a rise of +11.3% compared with a year ago. Based on its current share price, the company has a market value of £8.74 million.